HECFI lays off 12 more in advance of private operators

HECFI

Another round of layoffs has hit employees at the city’s entertainment and convention facilities.

John Hertel, interim CEO of Hamilton Entertainment and Convention Facilities Inc, says 12 employees were given severance notices Tuesday. That’s in addition to the 16 employees who received word in December that their positions would be cut.

Hertel, who has overseen HECFI as the city prepares to hand over operations to two private companies, says each employee facing a layoff was offered a severance package.

Global Spectrum, the entertainment giant about to take over Hamilton Place and Copps Coliseum, offered full-time jobs to 16 people who would otherwise have been laid off.

“Yesterday was a challenging day for the team, as we met individually with over 40 people to review their status going forward,” Hertel said in an email Wednesday. “I continue to be impressed with their professionalism and resilience.”

Hertel told The Spectator in December that the Carmen’s Group, the local company taking over operation of the convention centre, has not expressed interest in rehiring any laid-off employees.

P.J. Mercanti, spokesperson for the Carmen’s Group, said the company plans to adopt the Carmen’s business model at the convention centre — a model that requires far fewer staff.

For example, at Carmen’s, he has two sales reps whereas there were five at the convention centre booking fewer events.

If Carmen’s Group retained all the HECFI staff, Mercanti says, it wouldn’t be able to save the city $1 million a year, as promised.

“It’s just a different operating model that will benefit taxpayers.”

The 28 employees affected by both rounds of cuts will leave over the next few weeks.

“Their effective dates are spread out over the next few days and weeks to ensure that we have sufficient staff levels during the transition period through March 1 to maintain a high level of customer service and a smooth hand-off to the new operators,” Hertel said.

Part of the privatization agreement between the city and Global Spectrum and Carmen’s is to honour any existing collective agreements. As a result, any unionized HECFI employees will keep their jobs.